Australian Securities and Investments Commission
Corporations Act 2001 — Paragraphs 283GA(1)(a), 601QA (1)(a), 741(1)(a), 911A(2)(l), 992B(1)(a) and 1020F(1)(a) — Revocation and Exemption
1. Under paragraphs 283GA(1)(a), 601QA(1)(a) and 741(1)(a) of the Corporations Act 2001 (the “Act”), the Australian Securities and Investments Commission (“ASIC”) hereby revokes Class Order [00/232].
2. Under paragraphs 283GA(1)(a), 601QA(1)(a), 741(1)(a), 992B(1)(a) and 1020F(1)(a) of the Act, ASIC hereby exempts the class of persons mentioned in Schedule A in the case mentioned in Schedule B from Chapters 2L, 5C and 6D, sections 992A and 992AA and Part 7.9 of the Act.
3. Under paragraph 911A(2)(l) of the Act, ASIC hereby exempts all persons from the requirement to hold an Australian financial services licence for the provision of financial services in relation to the financial products referred to in Schedule B.
SCHEDULE A
A person who conducts an establishment (“school”) in which children are given formal primary or secondary education, and the officers, employees and agents of the school.
SCHEDULE B
Any of the following:
(a) a deposit of money with a school or with a person conducting a school;
(b) the operation of a managed investment scheme by a school or by a person conducting a school;
(c) the making of offers to receive deposits of money or to issue or arrange the issue of interests in a scheme, and the issue of such interests;
(d) the issue of forms of application in relation to such deposits or interests; and
(e) a recommendation to acquire any financial product mentioned above,
where:
(e) the making of the deposit or the subscription for an interest in the managed investment scheme is required as a condition of the enrolment of a child in the school; and
(f) each interest in the deposit or managed investment scheme is merely incidental to that enrolment.
Commencement
This instrument takes effect on the commencement of Schedule 1 to the Financial Services Reform Act 2001.
Dated the 7th day of February 2002
Signed by Brendan Byrne
as a delegate of the Australian Securities and Investments Commission
Overview
The Australian Securities and Investments Commission (ASIC) has enacted a legislative instrument under the Corporations Act 2001 to address the specific needs and operations of educational institutions regarding financial transactions and services. This instrument, effective from the commencement of Schedule 1 to the Financial Services Reform Act 2001, revokes Class Order [00/232] and provides exemptions to certain classes of persons from various regulatory requirements. Schools conducting primary or secondary education, along with their officers, employees, and agents, are exempt from certain financial services regulations when engaging in activities such as accepting deposits or operating managed investment schemes, provided these activities are directly related to the enrolment of students. Furthermore, this instrument exempts all persons from the requirement to hold an Australian financial services licence when providing financial services in relation to these specified financial products. The policy objective appears to be to alleviate regulatory burdens on schools that engage in incidental financial activities essential to their operations, ensuring that these activities do not unnecessarily complicate the educational environment.
Scope and Application
The Corporations Act 2001 is a comprehensive piece of Australian legislation that governs corporations, financial markets, and financial services. Specifically, under certain provisions of the Act, the Australian Securities and Investments Commission (ASIC) has the authority to revoke class orders and grant exemptions. The legislative instrument F2007B00296 pertains to the revocation of Class Order [00/232] and the granting of exemptions for certain entities and activities related to financial transactions. The Act applies to persons conducting an establishment in which children receive formal primary or secondary education, including the officers, employees, and agents of such schools. The exemptions provided under this instrument apply to specific financial activities such as deposits of money, the operation of managed investment schemes, and recommendations to acquire financial products, provided these activities are incidental to the enrolment of a child in the school. The instrument exempts these entities from certain regulatory requirements under the Act, including Chapters 2L, 5C, and 6D, sections 992A and 992AA, and Part 7.9 of the Act, as well as the requirement to hold an Australian financial services licence for the provision of financial services related to the specified financial products. The instrument took effect on the commencement of Schedule 1 to the Financial Services Reform Act 2001.
Key Provisions
The Australian Securities and Investments Commission (ASIC) has revoked Class Order [00/232] under the Corporations Act 2001 (section 283GA(1)(a), 601QA(1)(a), and 741(1)(a)) and has exempted a specific class of persons from various regulatory requirements. According to the Act, ASIC has revoked Class Order [00/232]. This revocation is significant as it removes certain regulatory constraints that previously applied to the class of persons mentioned in Schedule A of this legislation. These persons include those who conduct an establishment where children receive formal primary or secondary education, along with their officers, employees, and agents.
The Act, through ASIC, imposes several obligations and requirements on the parties governed by this legislation. Specifically, the class of persons outlined in Schedule A is exempted from the provisions of Chapters 2L, 5C, and 6D of the Act, sections 992A and 992AA, and Part 7.9 of the Act. This exemption applies in situations where the deposit of money or the operation of a managed investment scheme is a condition for enrolling a child in the school, and the interests in such deposits or schemes are incidental to the enrolment. Additionally, under section 911A(2)(l) of the Act, ASIC exempts all persons from the requirement to hold an Australian financial services licence for the provision of financial services related to the financial products specified in Schedule B.
The legislation also outlines the consequences for non-compliance. While specific penalties are not detailed in the text, breaches of the Corporations Act 2001 can lead to significant civil and criminal penalties. Civil penalties may include substantial fines, and criminal penalties can result in imprisonment, depending on the severity and nature of the breach. The exact penalties would be determined based on the specific provisions of the Act that are being contravened. The revocation and exemptions provided in this legislation aim to balance regulatory oversight with the practical needs of educational institutions managing certain financial activities.